Mis-selling: from impressions to evidence

by Renuka Sane.

Retail finance in India is once again in the news for reasons of fraud, this time in the form of the Saradha Group in West Bengal. There is a general sense that such schemes proliferate because of the failure of financial inclusion, and that better supervision by current regulators will bring . . . → Read More: Mis-selling: from impressions to evidence

Consumer Demand is Not the Whole Picture

See if you can spot what’s missing:

Businesses aren’t investing in the United States because of a lack of consumer demand, International Paper CEO John Faraci said Friday.

“I think this was all about consumer spending and demand. You know, the problem we have is there’s inadequate demand to create jobs. We know how . . . → Read More: Consumer Demand is Not the Whole Picture

A fueling fable: Consumer protection issues with payments

On 22nd December 2011, we purchased petrol worth Rs.100 from an Indian Oil fueling station in Bombay using an ICICI Bank debit card. The receipt suggested that we could have saved a fuel surcharge of 2.5% had we used an Indian Oil Citibank credit card. Upon seeing this message, we asked the cashier at the petrol pump . . . → Read More: A fueling fable: Consumer protection issues with payments

A False Analogy

Robin Hanson makes a predictable mistake:

Similarly, the kinds of innovation activities and intellectual property rights that make sense depend on available institutions and technologies. I’m happy to admit that today intellectual property (IP) is not obviously a good idea. Such property can create large “anti-commons” transaction and enforcement costs that greatly raise . . . → Read More: A False Analogy

Gift Card Advice as Borders Closes the Book on Business

In the wake of Borders recent announcement it’s folding up shop, those holding gift cards from the bookstore chain may have cause for concern. While the second-largest bookseller says it’s presently honoring gift cards, shoppers are well advised to use up their balances before it’s too late. We faced a similar situation when Blockbuster . . . → Read More: Gift Card Advice as Borders Closes the Book on Business

A Look at Regulation in the Credit Card Industry

The Credit Card Accountability, Responsibility and Disclosure Act, (CARD Act) is now one year old, and the Consumer Financial Protection Bureau released data showing its impact on the credit card industry as it prepares to begin its role as regulator of consumer financial products later this year.

This data showed that credit card late . . . → Read More: A Look at Regulation in the Credit Card Industry

How to Save This Summer

The summer travel season is finally in full swing. While gas prices remain high, many major retailers are taking steps to cut costs for disgruntled drivers. Wal-Mart is leading the charge, reducing their fuel prices by 10 cents per gallon for the summer months. The retail giant will offer discounted prices at gas stations . . . → Read More: How to Save This Summer

Health Care Consumers

People are bringing up the point that people simply don’t shop for health care. That we’re not consumers. Usually that people are non-economists, like some ER doc who thinks that he had to study for 8 years to become a doc, but that economists are just people with opinions. Or like Paul Krugman, who . . . → Read More: Health Care Consumers

Putting the Bow on a Positive 2010

U.S. retailers put a bow on a positive 2010 and registered their best performance in five years according to preliminary reports released on Monday.

Holiday sales jumped 5.5 percent as consumers returned to retailers across the board including high-end Macy’s Inc., Tiffany’s. and Bloomingdale’s.

Consumers were out in full forces at most every chain . . . → Read More: Putting the Bow on a Positive 2010

Consumers Score Another 2010 Trifecta

Income, Spending, and Saving All Grow in May

According to the Bureau of Economic Analysis the month of May provided a triplet of economic good news — personal income, spending, and savings all grew. Furthermore, income grew even greater than consumer expenditures and consequently, savings grew as well.

All three measures added similar gains . . . → Read More: Consumers Score Another 2010 Trifecta